Several Opinions of the General Office of the State Council on Accelerating the Reform and Development of Industry Associations

Since the reform and opening up, China's industry associations and chambers of commerce (hereinafter collectively referred to as industry associations) have developed rapidly, playing an important role in providing policy consultation, strengthening industry self-discipline, promoting industry development, and safeguarding the legitimate rights and interests of enterprises. However, due to imperfect relevant laws and regulations, lack of supporting policies, and incomplete management systems, industry associations still face problems such as unreasonable structure, insufficient role, and irregular behavior. The Third Plenary Session of the 16th Central Committee of the Communist Party pointed out that various industry associations and other self-regulatory organizations should be standardized and developed according to market principles; the Sixth Plenary Session of the 16th Central Committee further emphasized the need to balance cultivation, development, and management supervision, improve policies for nurturing, supporting, and legally managing social organizations, and leverage various social organizations to provide services, reflect demands, and regulate behavior to serve economic and social development. To accelerate the reform and development of industry associations and better adapt to new circumstances, with the approval of the State Council, the following opinions are hereby proposed:

I. Guiding Ideology and Overall Requirements for the Reform and Development of Industry Associations

(1) Guiding Ideology. Guided by Deng Xiaoping Theory and the important thought of the "Three Represents," fully implement the scientific outlook on development, and in accordance with the overall requirements for improving the socialist market economic system, take measures such as streamlining relationships, optimizing structure, improving supervision, strengthening self-discipline, perfecting policies, and enhancing construction to accelerate the reform and development of industry associations, gradually establish a system with sound institutions, reasonable structure, standardized behavior, and sound legal framework, and fully play the important role of industry associations in economic construction and social development.

(2) Overall Requirements. First, adhere to the market-oriented direction. Create a favorable development environment by improving systems and mechanisms and perfecting policies, optimize structure and layout, improve the quality of industry associations, and enhance service capabilities. Second, adhere to the separation of government and associations. Clarify the relationship between the government and industry associations, clearly define the functions of industry associations, and improve and standardize management methods. Third, adhere to overall coordination. Balance cultivation and development with standardized management, and coordinate industry association reform with government function transformation. Fourth, adhere to legal supervision. Accelerate the legislative process for industry associations, improve rules and regulations, and achieve legal establishment, democratic management, standardized behavior, and self-regulated development.

II. Actively Expand the Functions of Industry Associations

(3) Fully play the role of bridge and link. Governments at all levels and their departments should further transform their functions and entrust or transfer functions suitable for industry associations to them. Before issuing major policies and measures related to industry development, they should proactively listen to and solicit opinions and suggestions from relevant industry associations. Industry associations should strive to adapt to new requirements, improve working methods, conduct in-depth industry research, actively reflect industry and member demands to the government and its departments, propose opinions and suggestions on industry development and legislation, actively participate in the research and formulation of relevant laws, regulations, macro-control, and industrial policies, participate in the formulation and revision of industry standards, development plans, and access conditions, improve industry management, and promote industry development.

(4) Strengthen industry self-discipline. Combining administrative law enforcement with industry self-discipline is an important part of improving the market supervision system. Industry associations bear important responsibilities for implementing industry self-discipline, focusing on regulating market order, improving various self-regulatory management systems, formulating and organizing the implementation of industry professional ethics codes, vigorously promoting industry integrity construction, establishing and improving industry self-regulatory management and restraint mechanisms, regulating member behavior, coordinating member relations, and maintaining a fair and competitive market environment.

(5) Earnestly fulfill the purpose of serving enterprises. Industry associations represent the interests of enterprises in their industries and must earnestly serve enterprises. Industry associations conduct industry statistics according to authorization, grasp domestic and international industry development trends, collect and release industry information; establish newspapers and websites according to relevant regulations; provide legal, policy, technical, management, and market consulting services; organize training in talent, technology, management, and regulations to help member enterprises improve quality, enhance innovation capabilities, and improve business management; participate in industry qualification certification, new technology and product appraisal and promotion, accident identification, and related work; undertake government-commissioned or market and industry development needs-based trade fairs and exhibitions to create conditions for enterprises to expand markets.

(6) Actively help enterprises expand international markets. Industry associations should learn from advanced foreign practices and fully play a role in safeguarding domestic industry interests and supporting enterprises in international competition. They should actively organize domestic enterprises, especially small and medium-sized enterprises, to act jointly to explore foreign markets; build industry public service platforms; carry out domestic and international economic and technological exchanges and cooperation; connect with relevant international organizations; guide, regulate, and supervise members' foreign exchange activities; actively participate in coordinating foreign trade disputes; organize member enterprises to respond to anti-dumping, countervailing, and safeguard measures; and maintain normal import and export business order.

III. Vigorously Promote the Reform of the System and Mechanism of Industry Associations

(7) Implement separation of government and associations. Industry associations must independently carry out activities in accordance with laws, regulations, and their charters, effectively solve serious administrative tendencies and dependence on the government. They should be completely separated from the government, its departments, and enterprises and institutions in terms of functions, institutions, staff, and finances; those still sharing offices must separate within a time limit. Current civil servants may not concurrently hold leadership positions in industry associations; if necessary, strict approval according to relevant regulations is required. The ownership of state-owned assets used by industry associations must be clarified and allocated to industry associations for use and management according to relevant regulations. Establish a system for government purchase of industry association services; the government should pay corresponding fees for business activities or services entrusted to industry associations, and the required funds should be included in budget management.

(8) Reform and improve supervision methods. According to the principles of separation of government and associations, classified management, and sound self-regulatory mechanisms, strengthen and improve the registration and management of industry associations. Registration authorities, competent units, and relevant functional departments should strengthen communication and close cooperation, simplify and standardize management content and methods, gradually establish a scientific, standardized, and effective supervision system, and create a fair and just development environment for industry associations. Select several cities and national industry associations to carry out pilot reforms of the industry association management system. When conditions are mature, adjust and reform the trusteeship relationships among industry associations. For industry associations of certified public accountants, registered asset appraisers, lawyers, and others authorized by laws and regulations to perform special functions, relevant departments should strengthen supervision and guidance according to law.

(9) Adjust, optimize structure and layout. Actively promote the reorganization and transformation of industry associations, accelerate the establishment of evaluation mechanisms and exit mechanisms based on survival of the fittest. Establish a comprehensive evaluation system for industry associations, conduct regular tracking and evaluation, and commend those with integrity, law-abiding, strict self-discipline, and outstanding roles. Industry associations can improve service quality through appropriate competition. In economically developed regions and cities with industrial, product, and market advantages, local industry associations can be legally reorganized or transformed into regional industry associations. National industry associations can set their headquarters in areas and cities with industrial concentration and convenient service provision. Actively create conditions to cultivate a group of industry associations that operate according to market principles, have broad representation in the industry, and are internationally connected.

IV. Strengthen the Self-Construction and Standardized Management of Industry Associations

(10) Improve the corporate governance structure. Industry associations should establish and improve internal management systems centered on the articles of association, improve the systems of the general assembly of members (members' representative assembly) and the council (executive council), earnestly implement the re-election system, practice democratic management, establish and improve the Party's grassroots organizations, and fully play the supervisory and guarantee role of the Party organization. Council members must be elected strictly according to democratic procedures. The president (chairman) should be nominated by the council and elected by the general assembly of members (members' representative assembly) through a secret ballot, gradually implementing competitive elections. Entrepreneurs are encouraged to be elected as president (chairman). The secretary-general can be selected through election, appointment, or public recruitment.

(11) Deepen the reform of labor and personnel systems. Industry associations should fully implement the labor contract system to protect the legal rights and interests of staff. Establish and improve the post management system, enhance incentive mechanisms, attract outstanding talents, and optimize the age and knowledge structure of personnel. Strengthen the construction of professional talent teams. Industry associations and their branches and representative offices should be staffed with full-time personnel and conduct professional title evaluations for qualified staff in accordance with relevant national regulations.

(12) Regulate fee collection behavior. The standards and methods for collecting membership fees shall be independently determined by the industry association and shall take effect only after being approved by more than half of the representatives at the general assembly of members (members' representative assembly). Industry associations shall not engage in profit-making business activities, and any lawful income shall not be distributed among members or invested in member enterprises for profit. Without following the prescribed approval procedures, nationwide or industry-wide evaluation activities targeting enterprises shall not be held. Approved evaluation activities shall not charge fees. Industry associations may charge for exhibitions, trade fairs, seminars, training, and other activities, and fees should comply with relevant national regulations, with the basis, standards, and income and expenditure publicly disclosed. Fees for legally or authorized compulsory activities with monopoly nature such as arbitration, certification, inspection, appraisal, and qualification examinations shall comply with administrative and institutional fee regulations.

(13) Strengthen financial management. Industry associations should establish and improve financial management and accounting systems, appoint dedicated financial personnel, and implement unified financial management for their branches and representative offices. Establish an asset management system for industry associations and accept supervision and inspection in accordance with relevant regulations.

(14) Strengthen external communication management. Industry associations should establish and improve various external communication management systems, comply with laws, regulations, and discipline in external exchanges, and safeguard national interests.

V. Improve policy measures to promote the development of industry associations

(15) Implement social security systems. Staff of industry associations should participate in local social insurance for pension, medical care, unemployment, work injury, and maternity according to relevant national regulations and local management principles, fulfill payment obligations, and enjoy corresponding social security benefits.

(16) Improve tax policies. Finance and other departments should study and formulate tax preferential policies in a timely manner based on the tax system and the progress of industry association reforms, encouraging and supporting the accelerated development of associations.

(17) Establish and improve the legal and regulatory system. Relevant departments should summarize experiences, learn from the beneficial practices of developed countries, conduct legislative research and draft laws and regulations, and incorporate the development of industry associations into the legal framework.

(18) Strengthen and improve work guidance. Regions and relevant departments should actively take measures to guide industry associations in carrying out industry services, self-discipline, coordination, and other work. The National Development and Reform Commission, together with the Ministry of Civil Affairs and other departments, should promptly formulate supporting measures. Local people's governments at all levels should formulate specific implementation methods based on actual conditions.